International Remittances, Human Resources Outflow & Economic
Growth: Dynamic Regression Models
OLHA MULSKA
Department of Social and Humanitarian Development of the Regions
Dolishniy Institute of Regional Research of the National Academy of Sciences of Ukraine
79026, Lviv, Kozelnytska str., 4
UKRAINE
TARAS VASYLTSIV
Department of Social and Humanitarian Development of the Regions
Dolishniy Institute of Regional Research of the National Academy of Sciences of Ukraine
79026, Lviv, Kozelnytska str., 4
UKRAINE
HALYNA VOZNYAK
Department of Regional Financial Policy
Dolishniy Institute of Regional Research of the National Academy of Sciences of Ukraine
79026, Lviv, Kozelnytska str., 4
UKRAINE
NATALIIA MITSENKO
Department of Economics
Lviv University of Trade and Economics
79005, Lviv, Tugan-Baranovskogo str., 10,
UKRAINE
HALYNA KAPLENKO
Department of Economics and Public Administration
Ivan Franko National University of Lviv,
79000, Lviv, Universytetska str., 1
UKRAINE
ULIANA IVANIUK
Department of management of the organization
Lviv Polytechnic National University
79013, Lviv, St. Bandery str., 12
UKRAINE
Abstract: - The article presents an econometric analysis of the impact and elasticity of human resources outflow
and remittance with economic growth in Ukraine. It is proved that remittance (1) has a direct relationship with
economic activity rate, (2) a cyclical and multiplicative relationship with the inflationary process, and (3) an
indirect effect on capital investment. It has been established that migration favorably affects the financial well-
being of households and is an effective measure for accumulating investment capital and savings. The trigger for
Financial Engineering
DOI: 10.37394/232032.2024.2.3
Olha Mulska, Taras Vasyltsiv,
Halyna Voznyak, Nataliia Mitsenko,
Halyna Kaplenko, Uliana Ivaniuk
E-ISSN: 2945-1140
23
Volume 2, 2024
economic growth in the vector of ‘migration – remittance’ is the development of the migration capital market by
increasing the investment capacity of remittance’, ensuring the target remittance orientation to the small and
medium-sized business sector, guaranteeing market stability (security of remittance) and developing financial
inclusion.
Key-Words: - migration, economic growth, remittance, Ukraine, market, lag, modeling
Received: March 11, 2023. Revised: November 6, 2023. Accepted: December 9, 2023. Published: January 25, 2024.
1 Introduction
International migration is an ambiguous process that
has both positive and negative consequences and acts
as an optimum for the development of donor
countries and recipient ones of human resources.
Minimization of negative consequences, risks, and
threats of migration as well as the use of migration
potential to accelerate the pace of economic growth
and strengthen national security depends on the
effectiveness of methods of migration regulation.
The effectiveness of migration management
mechanisms depends on the information and
analytical support of migration policy the timely
identification of the character and direction of the
impact of human resources outflow and remittance
inflows to the indicators of economic and social
development, as well as the specifics of the impact of
migration on economic growth in different time lags.
A significant contribution to the socio-economic
development of the donor country is remittances. In
the studies on this issue, a methodology for analyzing
the scale and structure of remittances has been
developed, conclusions have been drawn for policy
regarding their stimulation, control, transparency,
and direction in the investment direction. In the
economic literature, the impact of migration on
socio-economic development is most often assessed
through the potential of remittances with the study of
the consequences of their impact on poverty and
inequality [1], smoothing out development
differentiation and disparities in territorial and socio-
class aspects [4; 39], intensification of private-public
factors to strengthen the competitiveness of the
national economy [17], overcoming obstacles to
increasing business activity [18], investment in
private business [35;48].
The formation of systemic management decisions
regarding the regulation of migration to ensure
economic growth and structurally balanced
development of the socio-economic system requires
a more detailed study, using econometric analysis
methods. Migration is a social and economic
phenomenon that affects the level of official
employment of working-age people, disposable
income, capital investments and gross value added,
the level of conservation of human resources, etc.
Remittances as financial determinants of migration
processes determine the quality and standards of
living. Intensive migration flows, which are a
combination of migration of human resources, goods,
services, remittances, investments, business, and
intellectual property, have a causal relationship with
the demographic situation, the labor market, capital
and credit, intellectual property, and
entrepreneurship. At the same time, migration
processes have an ambiguous impact on socio-
economic development, including on the well-being
of households, and the economic growth of
communities.
2 Problem Formulation
2.1 Literature Review
Numerous studies in the field of migration research,
especially at the beginning of 21st century, provided
the formation of a significant theoretical and
methodological basis for the laws of causes, factors
of activation, and consequences of the influence of
migration on both economic and social development.
In particular, in terms of human resources outflow,
the subject of analysis as often as possible (in
addition to traditional changes in the labor-resource
provision of the economy) is the impact on economic
growth and human development [3], the pace of
macroeconomic indicators [5], mobility and labor
productivity [29; 41], changes in the qualification of
the workforce and the growth of entrepreneurial
capital [9], the formation of civil society and the
elimination of corruption, barriers to business [10],
improved the general institutional environment [11;
50].
Investigating the processes and character of the
impact of migration on economic development, the
focus is mostly on the consequences manifested in
the form of internal and international investment
processes [7], foreign direct investment, which serves
as factors for enhancing economic growth and
ensuring the increase in national income, including
Financial Engineering
DOI: 10.37394/232032.2024.2.3
Olha Mulska, Taras Vasyltsiv,
Halyna Voznyak, Nataliia Mitsenko,
Halyna Kaplenko, Uliana Ivaniuk
E-ISSN: 2945-1140
24
Volume 2, 2024
value-added [12], GDP dynamics [15] and its long-
term stability [45], strengthening the country's
financial system in general [28] and improving the
capabilities of its monetary sphere in particular [24].
At the same time, the influence of migration
processes on narrower aspects of economic
development [31], including those related to
innovation and technological activity, especially in
less technological economies [22], links between the
R&D and manufacturing [26], small business
development [37], is no less relevant, socialization of
economic relations [40], de-shadowing of the
economy, especially small and medium-sized
businesses [44]. According to the research results,
when modeling the links between the parameters of
migration and economic growth, of particular
relevance, in particular in terms of regulating the
development of the internal market, import
substitution, etc., considers the changes in the
openness of trade [16], foreign trade, including in
terms of foreign economic and food security [34],
stabilization of the processes of functioning of the
internal market [14], intensification of foreign trade
relations [20; 38]. A thorough generalization of the
results of these and other studies gives grounds for
including in the system for assessing the impact of
migration on the economic growth of such main
indicators as GDP and value-added, foreign, and
capital direct investments, the number of small
business entities, the volume of internal trade and
foreign trade, innovation, and technological activity
of enterprises.
In forming a methodology for modeling the
impact of migration on social development, as shown
by the achievements of researchers on migration
problems, it is important to focus on such parameters
as employment and unemployment, economic
activity, wage, purchasing power of households, and
inflationary processes. The strength of migration's
influence on the social system can be significant and
indirect, and the nature of the impact can be both
direct (favorable) and reverse (unfavorable).
Migration as a negative phenomenon affects the labor
potential, creates threats, and violates the stability of
the intellectual and personnel security of the country
[43; 47]. At the same time, as a positive phenomenon,
it contributes to the growth of household incomes,
and the establishment of a balance of the labor
market, as there is a fall in unemployment, as well as
a decrease in poverty and an increase of the solvency
due to remittance intensifying.
Further development of methodological and
applied principles for analyzing the link between
migration and the social and labor spheres is based
on the results of studies characterizing the impact,
firstly, of remittances on the labor’s demand and
supply, human capital [6], shifts in the levels and
structure of poverty and inequality [46], intellectual
personnel outflow [30] and, secondly, the human
resources outflow for changes in the structure of
intellectual and human resources and economic
activity [13; 23], employment and income of non-
immigrants [21], in the exchange of experience and
knowledge, as well as the formation of business skills
[32], and as a result in the dynamics of parameters of
inter-regional socio-economic development.
Remittances have a direct impact on improving
the financial and material condition of households in
the donor country, but also lead to inflationary
effects, provided that a high proportion of
remittances are spent on consumption [25], and the
impact of migration on social development and
human capital can be measured by indicators of the
volume and share of the cost of social reproduction
of migrants [27]. At the same time, other researchers
argue the feasibility of considering the impact of
remittances on household incomes and investments
[2], income, expenses, and savings [8; 36],
differentiations in income and quality of life [42],
accumulation and distribution of wealth, including in
less economically developed areas [19; 49],
instability of household consumption in developing
countries [33]. High values of these indicators at the
same time demonstrate a significant dependence of
the national economy on the inflow of remittances.
The scientific discourse presents various methods
of analyzing the impact of migration on the
parameters of the progress of the national economy,
social reproduction, and social stability, which differ
both in the forms and types of migration and in the
countries of destination or origin. However, the
methodology for analyzing the consequences of the
human resources outflow, and the growth of
international remittances for economic growth needs
further improvement, considering changes in the
dynamic social and economic environment,
innovative progress, and transformations of the
priority of meeting the people’s needs. Therefore, it
actualizes the study ‘migration – remittances –
economic growth’ considering the multi-weight and
nonlinear influence of the migration factor on the
parameters of development of the social sphere and
the economic system.
2.2 Tasks of the Article
To carry out the complementary research on the
impact of migration on the economic growth in
Ukraine, the following hypothesis is developed and
tested:
Financial Engineering
DOI: 10.37394/232032.2024.2.3
Olha Mulska, Taras Vasyltsiv,
Halyna Voznyak, Nataliia Mitsenko,
Halyna Kaplenko, Uliana Ivaniuk
E-ISSN: 2945-1140
25
Volume 2, 2024
H: migration is multidimensional, its impact is
comprehensive and has different lags range with the
differentiated level of link with the parameters of the
social and economic development of Ukraine.
The main task of the paper is to model the impact
of migration processes (remittances, human
resources outflow) on the parameters of social
domain and economic system development in
Ukraine.
2.3 Data and research methodology
The empirical indicators of migration in Ukraine are
the number of arrivals, departures, and balances of
international migration, which demonstrate a
demographic change because of differences in the
place of registration. In this research, international
migration intensive is calculated as border crossing
ratio by Ukrainian citizens (except for tourist and
work trips, for shopping). Thus, the international
migration intensity in Ukraine from 2005 to 2021
decreased, between 2005 and 2007 and from 2018 to
2019 are the periods of the most scale of emigration,
as well as indicators of the ratio of emigrants to the
unemployed and economically active population. For
comparison, in 2002 and 2021, international
migration intensity amounted to 76.3 thous. people
and 19.1 thous. people and the share of migrants to
unemployed – 3.58 % and 1.14 %, respectively. In
2020, in comparison to 2002, the number of
departures and arrivals in Ukraine decreased by 57.1
thous. people and 16.1 thous. people accordingly.
The remittance inflow intensive is calculated as
the ratio of the volume of remittance through formal
and informal channels to the total population in the
country. The remittances inflow intensive into the
economy of Ukraine between 2006 and 2011 was
steady and ranged from 91.7 to 110.03 euros per
capita. It is worth noting that the remittances
decreased significantly in 2014 due to the
deterioration of economic stability and the political
situation in the country.
To identify the impact of the migration factor on
economic growth, the indicators of the development
of the social sphere and the economic system
preliminarily lagarifming was carried out. It allows to
interpret the results of creating regression models as
a percentage. Thus, the impact of migration on the
variables of social and economic development with
the consideration of the international migration
intensity in the previous periods can be demonstrated
based on the Autoregressive Distributed Lag (1)-(2).
, (1)
, (2)
where
is the j-th of social and economic
development indicators in the t-period; p is the lag
period; is international migration intensity in
the t period; is volumes of remittances in
in the t period.
The impact of international migration on the
consumer price index and retail trade of the host
country can be explained based on the Sinusoidal
Model (3):
,
(3)
where is consumer price index in the t period;
is the volume of small business entities in the
t period.
The impact of remittances on some indicators of
economic development of the donor country can be
explained based on the Sinusoidal Model (4):
,
(4)
where is the level of the capital investment in
the human resources’ host country in the t period;
is the volumes of retail trade in t period.
The impact of remittances on the gross value added
of the host country can be explained based on the
Rational Model (5):
, (5)
where is gross value added in the t period.
To test the model for statistical significance
(statistical hypothesis), the coefficients of
determination ( and Darbin Watson are
calculated. The obtained results are within acceptable
limits.
3 Problem Solution
3.1. Impact of migration on the Ukrainian
economy
The major priorities of the socio-economic
development of Ukraine include structural reforms,
e.g. infrastructure development, development of the
land market, modernization and technological
reequipment of industrial enterprises, development of
a network of innovative enterprises and intellectual
property market, as well as fall in the impact of social
and economic problems on the resilience of systems.
The existing mechanism of structural reforms support
and thus the maintenance of socio-economic
development in Ukraine is permanent and forced. It
has been framed and adjusted based on the concept
Financial Engineering
DOI: 10.37394/232032.2024.2.3
Olha Mulska, Taras Vasyltsiv,
Halyna Voznyak, Nataliia Mitsenko,
Halyna Kaplenko, Uliana Ivaniuk
E-ISSN: 2945-1140
26
Volume 2, 2024
of public regulation of the national economy. At the
current development stage in conditions of
globalization, it is kind of a progress-limiting tool.
Therefore, a new governmental mechanism should
comply with modern spatial development and
mobility trends it should follow the international
migration trends and the impact of social and
monetary remittances, which are the integral
elements of the country’s sustainable development.
Empirical estimations show that the impact of
migration on the condition of the labor market and
employment in the short run is quite favorable,
including unemployment (formula 6). However,
there is a reverse impact of human resources outflow
on unemployment in the second time lag at 5 %
statistical significance.
(6)
Compared to human capital outflow, remittances
do not impact the workforce significantly in several
time lags simultaneously (formulas 7-9).
Remittances boost unemployment by 0.31 % because
they can be the destimulators of the search for jobs
for family members of labor migrants.
(7)
Migration and remittances must have an inert
impact on the volume of economically active
population because they determine the dynamics of
workforce volumes in the previous period at 0.61 %
and 0.88 %, respectively. Therefore, there are no
grounds to argue that migration processes have a
direct impact on the economic activity rate.
, (8)
(9)
Empirical estimations demonstrate that the
increase in nominal wages (formulas 10-11) can be
expected from growing volumes of international
migration and remittances because the labour market
will face the lack of workforce supply, while its
consequences can be minimized due to labour
remuneration increase.
,
(10)
,
(11)
Migration has an indirect impact on the
consumer price index that is described by a sinusoidal
model (formula 12). The dependence shows the
cyclical relationship between migration and inflation
processes because the human resources outflow
multiplicatively impacts the price growth.
Interestingly, the impact of remittances on the
consumer price index is insignificant.
,
(12)
Migration in Ukraine favorably impacts the
financial well-being of households and remains to be
an efficient mechanism to increase savings, which is
confirmed by the results of the lag modeling (Table
1). The intensification of migration processes in
Ukraine impacts the growth of disposable income
through the outflow of human resources at 69.2 %
and remittances – at 77.8 %. The growth of human
resource outflow and international remittances
inflow by 1 % increases disposable income by 0.031
% and 0.58 %, respectively.
Table 1. The results of modeling the impact of migration processes on some parameters of the quality of
life in Ukraine, 2005-2021
Indicators
Econometric models
Impact
Elasticity
coefficient
Income
0.830
1.97
0.872
3.21
Food
expenditur
es
0.868
-2.70
Financial Engineering
DOI: 10.37394/232032.2024.2.3
Olha Mulska, Taras Vasyltsiv,
Halyna Voznyak, Nataliia Mitsenko,
Halyna Kaplenko, Uliana Ivaniuk
E-ISSN: 2945-1140
27
Volume 2, 2024
Indicators
Econometric models
Impact
Elasticity
coefficient
0.996
-7.85
Source: authors’ complication
3.2. Impact of migration on Ukrainian social
domain development
The human resources outflow increases foreign direct
investment in Ukraine in a four-year time lag
(coefficient of determination is 92.9 %). Meanwhile,
the impact of remittances on foreign direct
investment is unfavorable because remittances as
investment capital eliminate the significance of
foreign investment for the development of the
national economy, which often is dependent on
migration. The inert dependence of direct investment
on the dynamics of investment activity in the
previous period and the simultaneous inflow of
remittances is quite interesting (formula 13-14).
(13)
,
(14)
Labour migrants are among the key participants
of the market of capital as they direct their funds at
the purchase of real estate, securities, construction,
capital repairs, and deposits. Naturally, empirical
estimations confirm the favorable relationship
between migration processes and capital investment
in Ukraine at 68.0 % for migration and 82.5 % for
migration transfers (formulas 15-16). It is worth
mentioning that the impact on investment activity is
cyclical considering the volumes of foreign direct
investment and remittances.
,
(15)
,
(16)
The estimated regression model for the
country’s GDP shows a significant direct impact of
remittances and the reverse impact of human
resources outflow on the country’s economic
development with a one-year lag (formulas 17-18).
The development of the economic system in
conditions of international migration intensification
seems to be inert and its rate in the current year is
determined by the previous dynamics by 90 %.
,
(17)
,
(18)
It is worth mentioning the impact of migration
processes on the innovative system of the country
that is verified by statistical calculations, e.g.
migration fosters innovation and technology transfer
by 68.7 % and remittances – by 96.2 % (formulas 19-
20). By acquiring new knowledge, experience, and
qualification, labour and educational migrants boost
the spread of social transfers. Their implementation
in the social system increases the efficiency of
innovative activity and thus contributes to the
increase of innovative-technological competitiveness
of the country. Remittances such as investment in
innovations, R&D, science, and education generate
the value added in hi-tech industries and increase the
level of research commercialization and technology
transfer.
,
(19)
(20)
The reverse impact of migration at the level of
0.422 % on value added is observed in a one-year
time lag (formula 21). The sigmoidal impact on value
added is detected for remittances (formula 22). Since
monetary remittances are an unstable and
unsystematic investment in the country’s economy,
they cannot secure a consistent economic effect for
the Ukrainian industry.
,
(21)
Financial Engineering
DOI: 10.37394/232032.2024.2.3
Olha Mulska, Taras Vasyltsiv,
Halyna Voznyak, Nataliia Mitsenko,
Halyna Kaplenko, Uliana Ivaniuk
E-ISSN: 2945-1140
28
Volume 2, 2024
(22)
Modelling the dependence of the number of
small business entities on migration shows the
sinusoidal nature with a significant impact (0.969 by
the Chaddock scale). Meanwhile, the impact of
remittances on the number of small business entities
is not detected. Interestingly, the volumes of retail
turnover will probably increase by 0.38 % at the
growing remittances but they will decline by 0.42 %
at the intensification of human resources migration
(Table 2).
Table 2 The results of modeling the impact of migration processes on certain areas of economic
development in Ukraine, 2005-2021
Areas
Econometric models
Impact
Elasticity
coefficient
Small
business
0.969
+1.36
Retail trade
0.907
-0.42
0.649
+0.38
Foreign trade
0.906
+0.45
0.966
+0.10
Source: authors’ complication
The impact of migration processes on foreign
trade is open to interpretation as there is a favorable
impact of migration with the two-year time lag but an
unfavorable one with the four-year lag. Meanwhile,
the impact of remittances on foreign trade in Ukraine
is favorable at 10 % statistical significance in the
current dynamics and 5 % for a one-year-run lag.
4 Conclusion
Given the volume and stability character of
remittance into the Ukrainian economy, as well as
their anticyclical nature in the face of economic
shocks, the development of the migration capital
market in Ukraine will increase economic progress
and become a driver of economic growth. The
development of the migration capital market depends
on the effectiveness of the implementation of special
instruments for regulating remittances. It is the
monitoring of remittance, the development of
electronic retail payment systems, the reduction of
remittances, ensuring wide access of migrants to the
financial system, and stimulating the effective use of
ones. Thus, monitoring, including forecasting of
remittances, will allow forming information and
analytical database on the volumes, corridors, and
channels of migration transfers, their nature (for
example, cyclicality), as well as the causality of the
interrelationships of remittance and poverty, social
inequality, and economic growth. At the same time,
digital transformations in the system of payment
transactions require the development of new
electronic platforms and the formation of the latest
means of transfer, for example, to payment cards,
mobile phone accounts, or online accounts.
The deepening of the digitalization of the
economy and the widespread use of digitalization
processes in the financial system, the diffusion of
innovations into the banking sector and the business
sector are drivers of the development of the migration
capital market, which complementarily requires the
introduction of appropriate amendments to the
regulations on the management of labor migration, in
particular the development of financial inclusion
among migrants. The policy on the development of
the migration capital market in Ukraine should be
Financial Engineering
DOI: 10.37394/232032.2024.2.3
Olha Mulska, Taras Vasyltsiv,
Halyna Voznyak, Nataliia Mitsenko,
Halyna Kaplenko, Uliana Ivaniuk
E-ISSN: 2945-1140
29
Volume 2, 2024
formed in such main spheres as the management of
migration transfers in the projection of the
development of formal remittances, stimulating the
effective use of migrant remittances, and targeting
transfers to the real sector of the economy. The
priority vectors of the progress of the migration
capital market in Ukraine are increasing the
investment capacity of migration capital, ensuring
the target orientation of remittances to the small and
medium-sized business sector, ensuring market
stability (security of remittances), and developing
financial inclusion.
Increasing the investment capacity of migration
capital can be achieved through the creation of a
favorable economic environment, the development of
competitive advantages of the internal banking sector
as a financial intermediary in the migration capital
market, and the development of programs for the use
of special bank deposits. The tools to achieve the
investment goal are the development of programs to
stimulate the attraction of remittances to strategic
sectors of the economy, improve infrastructure in the
sphere of digital financial services, increase the
attraction of digital money transfers, provide high-
interest rates on migrant deposit accounts, and
permits to open bank accounts in foreign currency.
To ensure the target orientation of remittances to
the small and medium-sized business sector, it is
necessary to ensure a high level of sustainability in
the business environment, including innovation,
technological and industrial security, digital
transformation of strategic sectors of the economy,
and development of innovative infrastructure,
convergence of the socio-economic environment of
Ukraine and the main recipient countries of migration
capital and harmonization of information and
analytical support of state policy regulation of
remittances of Ukraine and the EU, reform the
customs system of the state.
The results of the econometric assessment of the
impact of migration and remittance on the economic
growth of Ukraine made it possible to confirm the
thesis that there is a causality nexus, including
sigmoidal, relationships between the research
variables. The international migration intensity has a
significant impact on the unemployment rate,
reducing it, and remittances influence the average
monthly nominal wage, the consumer price index,
and the share of total household spending on food.
Remittances have a direct significant positive impact
on the financial and material processing of
households, and incomes and affect the process of
optimizing the structure of consumer spending. The
connection of remittance with capital investments,
the number of small units, and the share of those
business entities that carry out innovative activities
are indirect. Remittances contribute to the
development of the capital market, the growth of
competitiveness of business, and the economy of
Ukraine as a whole.
To achieve high rates of economic growth through
the effective realization of migration potential, in
particular the targeted use of remittances, it is
determined that the policy on the development of the
migration capital market in Ukraine should be
formed in such main areas as the management of
remittances in the projection of the development of
formal money transfer channels, scaling up
remittances, stimulating the effective use of migrant
remittances and target direction of transfers to the
real sector of the economy. The priority vectors of the
progress of the migration capital market in Ukraine
are increasing the investment capacity of migration
capital, ensuring the target orientation of remittances
to the small and medium-sized business sector,
ensuring market stability, and developing financial
inclusion.
References:
[1] Acosta, P., Calderón, C., Fajnzylber, P., &
Lopez, H. (2008). What is the impact of
international remittances on poverty and
inequality in Latin America? World
Development, 36, 89–114.
https://doi.org/10.1016/j.worlddev.2007.02.016
[2] Adams, R. H., & Cuecuecha, A. (2010).
Remittances, household expenditure, and
investment in Guatemala. World Development,
38, 1626–1641.
https://doi.org/10.1016/j.worlddev.2010.03.003
[3] Akanbi, O. A. (2017). Impact of migration on
economic growth and human development:
Case of Sub-Saharan African countries.
International Journal of Social Economics,
44(5), 683–695. DOI: 10.1108/IJSE-07-2015-
0190
[4] Alpaslan, B., Kayaoglu, A., Meckl, J., Naval, J.,
Vanore, M., & Ziesemer, T. (2021). Economic
Effects of Remittances on Migrants’ Country of
Origin, The Economic Geography of Cross-
Border Migration, 449-483. DOI: 10.1007/978-
3-030-48291-6_20
[5] Andersson, L., & Siegel, M. (2020). The Impact
of Migration on Development in Developing
Countries: A Review of the Empirical
Literature, Regional Integration, and Migration
Governance in the Global South, 131-150. DOI:
10.1007/978-3-030-43942-2_6.
Financial Engineering
DOI: 10.37394/232032.2024.2.3
Olha Mulska, Taras Vasyltsiv,
Halyna Voznyak, Nataliia Mitsenko,
Halyna Kaplenko, Uliana Ivaniuk
E-ISSN: 2945-1140
30
Volume 2, 2024
[6] Azizi, S. (2018). The impacts of workers’
remittances on human capital and labor supply
in developing countries. Economic Modelling,
75, 377–396.
https://doi.org/10.1016/j.econmod.2018.07.011
[7] Baldé, Y. (2011). The impact of remittances and
foreign aid on savings/investment in Sub-
Saharan Africa. African Development Review,
23(2), 247–262. https://doi.org/10.1111/j.1467-
8268.2011.00284.x
[8] Bang, J. T., Mitra, A., & Wunnava, P. V. (2016).
Do remittances improve income inequality? An
instrumental variable quantile analysis of the
Kenyan case. Economic Modelling, 58, 394–
402. DOI: 10.1016/j.econmod.2016.04.004
[9] Batista, C., McIndoe-Calder, T., & Vicente, P.
C. (2017). Return migration, self-selection, and
entrepreneurship. Oxford Bulletin of Economics
and Statistics, 79(5), 797–821.
[10] Baudassé, T., Bazillier, R., & Issifou, I. (2018).
Migration and institutions: Exit and voice (from
abroad)? Journal of Economic Surveys, 32(3),
727–766. https://doi.org/10.1111/joes.12212
[11] Beine, M., & Sekkat, K. (2013). Skilled
migration and the transfer of institutional norms.
IZA Journal of Migration, 2(1), 9.
https://doi.org/10.1186/2193-9039-2-9
[12] Brown, R. P., Carmignani, F., & Fayad, G.
(2013). Migrants’ remittances and financial
development: Macro-and micro-level evidence
of a perverse relationship. The World Economy,
36(5), 636–660.
https://doi.org/10.1111/twec.12016
[13] Chauvet, L., Gubert, F., & Mesplé-Somps, S.
(2013). Aid, remittances, medical brain drain,
and child mortality: Evidence using inter and
intra-country data. The Journal of Development
Studies, 49(6), 801–818.
https://doi.org/10.1080/00220388.2012.742508
[14] Clemens, M. A., Özden, Ç., & Rapoport, H.
(2014). Migration and development research is
moving far beyond remittances. World
Development, 64, 121–124.
https://doi.org/10.1016/j.worlddev.2014.05.018
[15] Cooray, A. (2012). The impact of migrant
remittances on economic growth: Evidence
from South Asia. Review of International
Economics, 20(5), 985–998.
https://doi.org/10.1111/roie.12008
[16] Coulibaly, D., Gnimassoun, B., & Mignon, V.
(2018). Growth-enhancing effect of openness to
trade and migrations: What is the effective
transmission channel for Africa? Journal of
African Economies, 27(4), 369–404.
https://doi.org/10.1093/jae/ejx044
[17] Cruz Zuniga, M. C. (2011). On the path to
economic growth, do remittances help?
Evidence from panel VARs. The Developing
Economies, 49(2), 171–202.
https://doi.org/10.1111/j.1746-
1049.2011.00128.x
[18] Dastidar, S.G. (2017). Impact of Remittances on
Economic Growth in Developing Countries.
Global Economy Journal, 13, 20160066.
https://doi.org/10.1515/gej-2016-0066
[19] Garip, F. (2014). The impact of migration and
remittances on wealth accumulation and
distribution in rural Thailand. Demography,
51(2), 673–698. DOI: 10.1007/s13524-013-
0260-y
[20] Hassan, G. M., Chowdhury, M., & Bhuyan, M.
(2016). Growth effects of remittances in
Bangladesh: Is there a U-shaped relationship?
International Migration, 54(5), 105–121.
https://doi.org/10.1111/imig.12242
[21] Hausmann, R., & Nedelkoska, L. (2018).
Welcome home in a crisis: Effects of return
migration on the non-migrants wages and
employment. European Economic Review, 101,
101–132. DOI:
10.1016/j.euroecorev.2017.10.003
[22] Hübler, M. (2016). Does migration support
technology diffusion in developing countries?
World Development, 83, 148–162. DOI:
10.1016/j.worlddev.2016.01.024
[23] Ilyash, O., Lupak, R., Vasyltsiv, T.,
Trofymenko, O., & Dzhadan, I. (2021)
Modelling of the dependencies of industrial
development on marketing efficiency,
innovation, and technological activity
indicators. Ekonomika, 100(1), 94-116. DOI:
10.15388/Ekon.2021.1.6.
[24] Issahaku, H., Harvey, S. K., & Abor, J. Y.
(2016). Does development finance pose an
additional risk to monetary policy? Review of
Development Finance, 6(1), 91–104.
https://doi.org/10.1016/j.rdf.2016.06.001
[25] Jawaid, S., & Raza, S. (2014). Effects of
Workers' Remittances and its Volatility on
Economic Growth in South Asia, International
Migration, 54, 2, 50-68. DOI:
10.1111/imig.12151
[26] Jonkers, K., & Cruz-Castro, L. (2013). Research
upon return: The effect of international mobility
on scientific ties, production, and impact.
Research Policy, 42(8), 1366–1377.
DOI:10.1016/j.respol.2013.05.005
[27] Konte, M. (2018). Do remittances not promote
growth? A finite mixture-of-regressions
Financial Engineering
DOI: 10.37394/232032.2024.2.3
Olha Mulska, Taras Vasyltsiv,
Halyna Voznyak, Nataliia Mitsenko,
Halyna Kaplenko, Uliana Ivaniuk
E-ISSN: 2945-1140
31
Volume 2, 2024
approach. Empirical Economics, 54(2), 747–
782. DOI: 10.1007/s00181-016-1224-z
[28] Kumar, R. R., Stauvermann, P. J., Patel, A., &
Prasad, S. (2018). The effect of remittances on
economic growth in Kyrgyzstan and
Macedonia: Accounting for financial
development. International Migration, 56(1),
95–126. https://doi.org/10.1111/imig.12372
[29] Levytska, O., Mulska, O., Shushkova, Y.,
Ivaniuk, U., Vasyltsiv, T., Krupin, V., &
Ivanova, L. (2022). Modeling the impact of
emigration on the social and economic
development of the Carpathian region of
Ukraine. Bulletin of Geography. Socio-
economic Series, 57(57), 141-154.
http://doi.org/10.12775/bgss-2022-0028
[30] Li, X., McHale, J., & Zhou, X. (2017). Does
brain drain lead to institutional gain? The World
Economy, 40(7), 1454–1472.
https://doi.org/10.1111/twec.12407
[31] Lupak, R., Mizyuk, B., Zaychenko, V.,
Kunytska-Iliash, M., & Vasyltsiv, T. (2022).
Migration processes and socio-economic
development: interactions and regulatory policy.
Agricultural and Resource Economics:
International Scientific E-Journal, 8(1), 70-88.
https://doi.org/10.51599/are.2022.08.01.04
[32] Maria Hagan, J., & Wassink, J. (2016). New
skills, new jobs: Return migration, skill
transfers, and business formation in Mexico.
Social Problems, 63(4), 513–533. DOI:
10.1093/socpro/spw021
[33] Mondal, R.K., & Khanam R. (2018) The
impacts of international migrants’ remittances
on household consumption volatility in
developing countries, Economic Analysis and
Policy, 59, 171-187. DOI:
10.1016/j.eap.2018.07.001
[34] Ogunniyi, A., Mavrotas G., Olagunju, K.,
Fadare, O., & Adedoyin, R. (2020). Governance
quality, remittances and their implications for
food and nutrition security in Sub-Saharan
Africa, World Development, 127. DOI:
10.1016/j.worlddev.2019.104752,
[35] Pontarollo, N., & Mendieta Muñoz, R. (2018).
Temporary and permanent effects of remittances
on economic growth in Ecuador. Journal of
International Development, 30(3), 533–536.
https://doi.org/10.1002/jid.3358
[36] Přívara, A., Trnovský, K. (2021). The impact of
remittances on household savings in the Baltics,
Investment Management and Financial
Innovations, 18, 1, 335-345. DOI:
10.21511/imfi.18(1).2021.27.
[37] Ruiz, I., Siegel, M., & Vargas-Silva, C. (2015).
Forced up or down? The impact of forced
migration on social status. Journal of Refugee
Studies, 28(2), 183–201.
https://doi.org/10.1093/jrs/feu035
[38] Ruxho, F., & Ladias, C. A. (2022). Increasing
funding for the regional industry of Kosovo and
the impact on economic growth. Regional
Science Inquiry, 14(1), 117-126.
[39] Sadova, U. Ya. ed. (2011). Regional migration
policy and mechanisms for its implementation.
Dolishniy Institute of Regional Research of
NAS of Ukraine, Lviv, Ukraine.
[40] Scheffran, J., Marmer, E., & Sow, P. (2012).
Migration as a contribution to resilience and
innovation in climate adaptation: Social
networks and co-development in Northwest
Africa. Applied Geography, 33, 119–127.
https://doi.org/10.1016/j.apgeog.2011.10.002
[41] Semiv, S., Berezivskiy, Y., Baranyak, I.,
Mulska, O., & Ivaniuk, U. (2021). Priorities and
tools of regulation of external migration in the
Carpathian region of Ukraine. Agricultural and
Resource Economics: International Scientific E-
Journal, 7(2), 160-181.
https://doi.org/10.51599/are.2021.07.02.09
[42] Shahbaz, M., Rehman, I. U., & Mahdzan, N. S.
A. (2014). Linkages between income inequality,
international remittances and economic growth
in Pakistan. Quality & Quantity, 48(3), 1511–
1535. DOI: 10.1007/s11135-013-9850-4
[43] Shebanin, V., Kormyshkin, I., Kliuchnyk, A.,
Allakhverdiyeva, I., & Umanska, V. (2022).
Tools of formation of the system of socio-
economic security of territorial communities of
the region. Regional Science Inquiry, 14(1),
127-136.
[44] Stojanov, R., Němec, D., & Žídek, L. (2019).
Evaluation of the long-term stability and impact
of remittances and development aid on
sustainable economic growth in developing
countries. Sustainability, 11, 1538.
https://doi.org/10.3390/su11061538
[45] Vacaflores, D. E. (2018). Are remittances
helping lower poverty and inequality levels in
Latin America? The Quarterly Review of
Economics and Finance, 68, 254–265.
https://doi.org/10.1016/j.qref.2017.09.001
[46] Vasyltsiv, T., Mulska, O., Osinska, O.,
Makhonyuk, O. (2022). Social and economic
development of Ukraine: Modelling the
migration factor impact. Economics and
Business Review, 8, no.3, 27-58.
https://doi.org/10.18559/ebr.2022.3.3
Financial Engineering
DOI: 10.37394/232032.2024.2.3
Olha Mulska, Taras Vasyltsiv,
Halyna Voznyak, Nataliia Mitsenko,
Halyna Kaplenko, Uliana Ivaniuk
E-ISSN: 2945-1140
32
Volume 2, 2024
[47] Voznyak, H., Mulska, O. & Bil, M. (2021).
Migration aspirations of territory population: A
case study of Ukraine. Problems and
Perspectives in Management, 19(2), 217-231.
DOI:10.21511/ppm.19(2).2021.18
[48] Voznyak, H., Mulska, O., Bil, M., Patytska, K.,
& Lysiak, L. (2022). Financial well-being of
territorial communities and the economic
growth of the regions of Ukraine: assessment
and modeling of interrelation. Agricultural and
Resource Economics: International Scientific E-
Journal, 8(2), 141-157.
https://doi.org/10.51599/are.2022.08.02.08
[49] Voznyak, H., Kloba, T., Kloba, S., & Kloba, L.
(2019). Model of assessment of financial
imbalances in regions of Ukraine. Investment
Management and Financial Innovations, 16(1),
365–377. doi:10.21511/imfi.16(1).2019.28
[50] Zghidi, N., Sghaier, I. M., & Abida, Z. (2018).
Remittances, institutions, and economic growth
in North African countries. Journal of the
Knowledge Economy, 9(3), 804–821. DOI:
10.1007/s13132-016-0377-5
Contribution of Individual Authors to the
Creation of a Scientific Article (Ghostwriting
Policy)
The authors equally contributed to the present
research, at all stages from the formulation of the
problem to the final findings and solution.
Sources of Funding for Research Presented in a
Scientific Article or Scientific Article Itself
No funding was received for conducting this study.
Conflict of Interest
The authors have no conflicts of interest to declare
that are relevant to the content of this article.
Creative Commons Attribution License 4.0
(Attribution 4.0 International, CC BY 4.0)
This article is published under the terms of the
Creative Commons Attribution License 4.0
https://creativecommons.org/licenses/by/4.0/deed.en
_US
Financial Engineering
DOI: 10.37394/232032.2024.2.3
Olha Mulska, Taras Vasyltsiv,
Halyna Voznyak, Nataliia Mitsenko,
Halyna Kaplenko, Uliana Ivaniuk
E-ISSN: 2945-1140
33
Volume 2, 2024
